» selling

One of the most common mistakes selling lawyers make is approaching potential buyers directly before any formal process is in place.

From the first inquiry to the final stages, a good advisor manages the flow of information at every step. That includes ensuring the NDA is in place before any meaningful detail is shared.

In today’s tight labor market, most buyers will keep staff because they provide continuity and help maintain client relationships. However, staffing decisions ultimately depend on the buyer and the deal structure.

The best approach is to send a clear, professional letter or email to clients, informing them of the transition and introducing the new lawyer. Clients should be told when the change will happen and reminded that they can choose other counsel or request their file. The goal is to reassure them that their matters will continue smoothly.

Tail coverage for solo lawyers typically costs about 1.5 to 3 times your last annual malpractice premium as a one-time payment. While the cost can be high, it is usually worth it, as it protects you from malpractice claims that may arise years after you retire.

This is typically negotiated on a case-by-case basis. For hourly matters, WIP is often collected by the seller or credited to the buyer as part of the transaction.

In contingent-fee cases, the usual approach is to allocate fees between the seller and buyer based on who did the work and who carries the case forward.

You can do it yourself, though it takes time and risks confidentiality. The best option is to work with a consultant who can help you determine the best exit strategy, guide the process, and identify the right buyer.

Some local business brokers can assist as well, but if you go that route, make sure they have experience working specifically with law firms. Most do not.

If you love what you do, can’t imagine stepping away, and your goal is to maximize profits, this approach may make sense at times. The most important thing is to have a contingency or emergency plan in place. Someone should know all the passwords, where key files are, and who needs to be notified in different situations.

Most states have adopted some version of Rule 1.17, which governs the sale of a law practice. The rule is relatively straightforward and is designed to protect clients during the transition.

Beyond Rule 1.17, lawyers must ensure the buyer is competent, protect client confidentiality throughout the process, and respect client autonomy, including obtaining consent where required.